Makkah projects expected to spur an economic boom

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3 years ago

“What we are witnessing today is a huge developmental revolution in Makkah, which takes into account the state’s five-year development plans and raises the level of services to pilgrims and visitors,” said Maher bin Saleh Jamal, chairman of the Makkah Chamber of Commerce and Industry.

By: Jumana Abdel-Razzaq

Ongoing massive projects in Makkah, including the Grand Mosque expansion, first ring road, tunnels and buildings will lead to an economic boom in the city, experts say.

State spending on government projects will double because of the simultaneous spending by the private sector according to experts, says Saudi’s Arab News.

Expenditures on land expropriation and compensation of landowners will also increase the government takes greater initiative in financing what is being called a “developmental revolution in Makkah”.

Five major projects were launched Saturday by His Highness King Salman as part of the third Saudi expansion of the Grand Mosque, a massive project which is being called “The Project of the Century” because of its massive scale.

The expansion projects will consist of the construction of a new building as well as the expansion and development of courtyards around the mosque, including walkways, tunnels and toilets.

Maher bin Saleh Jamal, chairman of the Makkah Chamber of Commerce and Industry said the expansion of the Grand Mosque will help accommodate 1.85 million people, and will contribute in providing more comfort to pilgrims, as well as encourage private sector investment in the holy city.

He also said that the project aim to serve the pilgrims, visitors, citizens and residents of Makkah and expects that Makkah would attract around SR100 billion in investment, adding that for each SR1 billion spent by the state, about SR3.3 billion to SR5 billion will be spent by the private sector in various sectors, particularly real estate which has experienced significant growth in recent years.

Officials encourage more businessmen to actively participate in large-scale projects and agree that more spending will result in enormous benefits including an increase job opportunities, increasing the size of capital investment in the holy city, improving the level of services for pilgrims as well as add many other direct and indirect advantages.